Q FM Africa's Modern Radio
Government has been warned that ignoring the taxation dispute it has with the mining firms may be costly to the Zambian economy.
Economist Chrispin Mphuka is advising government to take seriously the taxation dispute and consider engaging mining firms over the new mine tax regime.
Dr. Mphuka, who is also former Economics Association of Zambia (EAZ), says as opposed to being rigid, government should get more information on the impact of the new tax regime from the mines.
He has told Q-News that if indeed mines have made their calculations and have resolved to downsize workforce and production in view of the tax regime, there is nothing government can do to stop them.
Dr. Mphuka, who is equally a university lecturer, says this will however mean that government will lose out on tax revenue and the economy will also suffer job losses.
He states that this entails that there must be a pass where government should have dialogue with the mines and come up with an amicable solution to the standoff.
Dr. Mphuka has encouraged government to engage the mines in a more strategic interaction and reach a win-win situation without affecting the economy negatively.
He notes that ,if on the other hand, government is convinced that there will no job losses and that production will not go down in view of the new mine tax regime, then it is ok.